How to Reduce Property Taxes in Florida

Owning a home in Florida comes with many benefits, but property taxes can be a significant expense. The good news? There are several ways to reduce your property tax bill and keep more money in your pocket. By taking advantage of exemptions, assessment limitations, and other tax-saving programs, Florida homeowners can lower their annual costs without sacrificing their financial well-being.

If you're wondering how to reduce property taxes in Florida, here are some of the best strategies to consider.

How Can You Reduce Property Taxes in Florida?

In today’s economy, every expense adds up, and property taxes are no exception. Fortunately, there are several ways to lower your tax burden, helping you save money while still fulfilling your obligations as a homeowner. 

Below are six effective strategies that Florida homeowners can use to reduce their property taxes and ensure they’re not overpaying.

1. Apply to the Homestead Exemption

One of the most effective ways to reduce property taxes in Florida is by applying for the Homestead Exemption. This exemption provides substantial tax savings for homeowners who use the property as their primary residence.

• Who Qualifies? To be eligible, you must own and occupy the home as of January 1 of the tax year. This means it must be your permanent residence, not a rental or vacation home.

• How to Apply: Submit an application to your county property appraiser’s office between January 1 and March 1 of the tax year. Required documents typically include proof of ownership, Florida residency, and evidence that the home is your primary residence.

• How Much Can You Save? The Homestead Exemption can reduce the taxable value of your home by up to $50,000:

• The first $25,000 is exempt from all property taxes.

• The next $25,000 is taxable.

• Another $25,000 exemption applies to non-school taxes for properties assessed over $50,000.

For example, if your home is assessed at $75,000, the first $25,000 is exempt, the next $25,000 is taxable, and the remaining $25,000 is exempt from non-school taxes.

2. Take Advantage of the Save Our Homes (SOH) Cap

The Save Our Homes (SOH) amendment protects homeowners from significant increases in property taxes due to rising property values.

SOH limits the annual increase in the assessed value of a homesteaded property to 3% or the change in the Consumer Price Index (CPI), whichever is lower. This means even if your property's market value rises substantially, your assessed value—and thus your property taxes—will not increase beyond this cap.

This cap can lead to considerable tax savings over time, especially in a booming real estate market. As property values rise, the gap between your home's market value and its assessed value widens, resulting in lower taxes than non-homesteaded properties.

3. Transfer Your SOH Benefit (Portability)

Portability allows homeowners to transfer their SOH benefit from one Florida homestead property to another, ensuring continued tax savings when moving.

• Eligibility: To qualify, you must establish a new homestead within three years of abandoning your previous one. This means if you sell your home, you have up to three years to purchase and establish a new primary residence to transfer your SOH benefit.

• Application: File the Transfer of Homestead Assessment Difference form with your county property appraiser's office. It's crucial to adhere to filing deadlines to ensure your benefits are transferred without interruption.

4. Explore Additional Property Tax Exemptions

Beyond the Homestead Exemption, Florida offers several other exemptions to reduce your property tax liability further.

• Senior Citizen Exemption: Homeowners aged 65 or older with limited income may qualify for additional exemptions. The specifics can vary by county, so it's essential to consult your local property appraiser's office for details.

• Disability and Veteran Exemptions: Florida provides exemptions for:

  • Totally and permanently disabled individuals.

  • Veterans with service-connected disabilities.

  • Surviving spouses of veterans or first responders who died in the line of duty.

  
  

• First Responder Exemption: Disabled first responders injured in the line of duty may be eligible for a full exemption on their homesteaded property.

• Widow/Widower Exemption: A $5,000 exemption is available for widows and widowers who are permanent residents of Florida.

• Additional Exemptions: Depending on your circumstances, other exemptions may be available, such as those for:

  • Active-duty military personnel deployed overseas.

  • Properties with certain energy-efficient improvements.

  • Historic properties undergoing renovation.

  
  

It's advisable to review all available Florida property tax exemptions with your county property appraiser to ensure you're receiving all the benefits for which you qualify.

Some exemptions vary by county.  Review all available Florida property tax exemptions with your county property appraiser to ensure you're receiving all the benefits for which you qualify.

5. Appeal Your Property Assessment

If you believe your home’s assessed value is too high, you have the right to challenge it. An incorrect assessment can mean higher property taxes than you should be paying.

It's advisable to review your property assessment annually. Each August, the Property Appraiser's office sends out a Notice of Proposed Property Taxes, also known as a TRIM Notice. This notice details your property's assessed value and the proposed taxes. Upon receiving it, compare the assessed value to recent sales of similar properties in your area. If there's a significant discrepancy, it may indicate an over-assessment. ​

If you identify potential inaccuracies, consider the following steps for the appealing process:​

1. Informal Conference – First, contact your county Property Appraiser’s Office to discuss concerns. Many cases are resolved at this step.

2. File a Petition with the Value Adjustment Board (VAB) – If no resolution is reached, submit a petition to the VAB within 25 days of receiving your TRIM notice. There is usually a small filing fee.

3. Gather Supporting Evidence – Provide documentation such as recent comparable sales, independent appraisals, or evidence of property defects.

4. Attend the Hearing – Present your case before the VAB, where a decision will be made regarding your appeal.

6. Stay Informed About Property Tax Law Changes

Property tax laws can evolve, directly impacting your tax obligations. Staying informed about these changes ensures you can take advantage of new benefits or prepare for adjustments.

• Recent Amendments: In November 2020, Florida voters approved Amendment 5, extending the period to transfer "Save Our Homes" benefits from two to three years. This change provides homeowners additional time to port their tax benefits to a new homestead. ​

• Future Proposals: Regularly monitor upcoming ballot measures and legislative sessions that may affect property tax laws. Engaging with local news outlets, subscribing to Florida Department of Revenue updates, or consulting with experienced real estate professionals can inform you about potential changes.

Take Control of Your Property Taxes and Maximize Your Savings

Property taxes can be a major expense, but a strategic approach can help you avoid overpaying. By applying for exemptions, reviewing your property’s assessed value, and staying informed about tax law changes, you can lower your tax burden and protect your investment. Working with real estate professionals ensures your home is accurately assessed, so you don’t pay more than necessary.

At Florida Realty Marketplace, we provide expert property valuations and insights to help homeowners like you reduce unnecessary taxes and uncover potential savings. See What Your Home Is Worth today, and let us help you make informed decisions that keep more money in your pocket.